Foord International Feeder Fund
CLOSED TO NEW INVESTMENT
For conservative, absolute return-oriented investors in global markets
The fund aims to achieve meaningful inflation-beating US$ returns over rolling five-year periods from a conservatively managed portfolio of global investments reflecting Foord's prevailing best investment view.
FOR SOUTH AFRICAN INVESTORS
• With a moderate risk profile
• Requiring diversification through investments not available in South Africa
• Seeking to hedge rand depreciation.
|Year||Fund Return %||Benchmark Return %||SA Inflation %|
|2006 (from 01/Mar)||24.9||28.4||5.0|
|2020 (to 31/Jul)||22.9||20.8||1.4|
To achieve meaningful US inflation-beating ZAR equivalent returns over a full investment cycle.
Longer than three years.
1 March 2006
R50 000 lump sum or R1 000 per month
The portfolio may only invest in cash and one other collective investment scheme.
The Foord International Fund, in which the fund invests, does not distribute its income.
Marginal to zero income yield as the Foord International Fund is a roll-up fund and does not distribute its income.
Fully invested in the Foord International Fund, sub-fund of Foord SICAV, domiciled in Luxembourg.
|Risk of loss||
Currency volatility means risk of loss in the short term is high. In general, the risk of loss is lower than that of the average foreign equity fund.
|Security description||Asset class||Market||Portfolio weight %|
|ETFS Physical Gold||Commodity||GB||8.4|
|Nagacorp 9.375% 21/05/2021||Bond||SG||6.3|
|Wheaton Precious Metals Corp||Equity||US||4.9|
|US Treasury 2.75% 30/11/2020||Bond||US||4.9|
|Roche Holding AG||Equity||CH||4.5|
|CVS Health Corp||Equity||US||4.0|
Monthly Commentary – July 2020
- Developed market equities (+4.8%) gained when second quarter corporate earnings surpassed (albeit lowered) expectations—sizeable fiscal and monetary stimulus measures continue to bolster equity markets
- Emerging markets (+8.9%) outperformed, led by Brazil (+14.2%) and China (+9.4%)—continued oil price stabilisation (+5.2%) and gradual peaking of COVID-19 infections in Brazil served to buoy the country’s bourses
- Global developed market sovereign and highly-rated corporate bond yields are at record lows with more than 60% of global debt trading below 1.0% and 85% below 2.0%—July’s US Fed meeting reinforced expectations that interest rates will remain low for the foreseeable future
- The US dollar continued to decline—weakening against the euro (+5.3%), British pound (+6.2%) and Japanese yen (+2.0%)
- Precious metals gold (+9.5%) and silver (+34.9%) led gains in hard and soft commodities—driven by global central banks pinning interest rates near zero, unprecedented peacetime fiscal deficits and emerging US dollar weakness
- The fund’s gold ETF and investment in precious metals streamer Wheaton Precious Metals (+23.3%) contributed most to performance—while leading Hong Kong retail property developer Wharf REIC (-25.9%) again detracted on renewed political instability and reaccelerating COVID-19 infections
- The path to a full economic recovery is considerably uncertain given increasing geopolitical tensions, expensive equity valuations, US elections and the COVID-19 pandemic—the managers remain cautious and the fund retains S&P 500 hedges to protect against these elevated risks
- The rand (+1.6%) appreciated on positive emerging market sentiment and dollar weakness but has declined 17.9% against the greenback this year—the currency remains vulnerable in the long-term given South Africa’s structural economic weaknesses
The standard charge rate is a fixed fee of 0.35% plus VAT. A 1.00% annual fee is levied in the Foord International Fund.
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